Hilton Foods: Shares drop for meat and fish supplier amid US regulatory restrictions and ‘soft demand’ for seafood
Shares in meat and fish supplier Hilton Foods have dropped sharply after the firm said it had been hit by US regulatory restrictions and a “soft demand” for seafood.
The firm, which operates its Hilton Foods Seafood UK division from Grimsby, reported revenue of £2.1bn for the six months ending 29 June, up from £1.9bn last year.
But shares in Hilton dropped by almost a fifth following the update, landing at their lowest level in almost two years.
This came after the company said its UK seafood performance had been impacted by “softer demand for white fish,” which was brought about by higher costs for consumers due to “significant” raw material inflation.
Hilton said the inflation had been driven by cuts in fishing quotas, adding that it was responding by reformulating its products and introducing alternative fish species.
In Europe, the company also saw its Foppen smoked salmon business hit by regulatory restrictions on shipments to the US, resulting in what the firm described as “operational disruptions”. Hilton said it had taken corrective actions to resolve the issue.
Steve Murrells CBE Hilton Foods chief executive officer, hailed a “strong” performance for Hilton.
He said: "The first half of 2025 has been shaped by a strong performance in our retail meat and convenience businesses.
“Whilst we have faced market-driven pressures and some specific operational challenges in seafood, we have responded with agility and continue to have a strong platform in place for future growth.
"We have a simple objective: building upon the core strengths that have long defined the business. Our global capabilities and established customer relationships continue to provide a strong foundation for growth and sustainable returns.”
Hilton’s US restrictions came on shipments to the country from the firm’s smoked salmon facility in Greece, leading to the company “temporarily transitioning” production to its facility in the Netherlands.
The firm said it was working closely with the FDA and taking the “necessary corrective actions” to resume production in Greece.
Hilton reported adjusted profit before tax of £33.6m, an increase of three per cent on a constant currency basis and up 0.3 per cent on a reported basis. Statutory profit before tax was down 4.7 per cent.
In the UK and Ireland, Hilton saw its retail meat volumes grow 1.7 per cent, outperforming a market decline of 2.7 per cent. The company said this was supported by “strategic trade planning” with its customer partners, and new product launches.
Hilton posted revenue of £797.3m for the period in the UK and Ireland, up from £709.6m in the same period the year prior.
Mr Murrells added that preparations were “well underway” for the firm’s upcoming Christmas trading period, adding that the company “remains committed” on delivering full-year results “in line with expectations”.
In March, Hilton announced that it had entered into a new joint venture with the National Agricultural Development Company (NADEC) in Saudi Arabia.
The firm said the collaboration, initially for a period of 10 years, would see it develop new “state-of-the-art” facilities in the country.
Hilton Foods said it would hold a 49 per cent stake in the joint venture, contributing around £6.5m in investment
In its latest announcement, the firm said the project remains “on schedule”.